Consumer Watchdog is a (fiercely) independent consumer rights and advocacy organisation campaigning on behalf of the consumers of Botswana, helping them to know their rights and to stand up against abuse. Contact us at watchdog@bes.bw, call us on +267 3904582 or find us on Facebook by searching for Consumer Watchdog Botswana. Everything we do for the consumers of Botswana has always been and always will be entirely free.

Saturday, 14 September 2013

Surrounded by thieves

Anyone who reads Mmegi will know that there seems to be an upsurge in crime recently. Even the Government has expressed concern. Armed robberies of stores, street-crime and home invasions, they all seem to be getting worse. It’s about time that we take greater efforts to protect ourselves and our communities. It’s also about time that we demand greater protection from those with the power to protect us.

But they’re not the only type of thieves that are threatening us. There are more highly-evolved species of thieves out there.

We recently received an email from a frightened reader. She said this:

“I am worried sick about my husband’s bank account because of these people X-FOREX, they are calling me everyday. I started communicating with them last week Tuesday and they asked me to give them the last 3 digit at the back of my ATM card and I told them that I don’t use Visa card, then he asked me if my husband doesn’t have a visa card. I told him yes he does and he said its okay because we use the same surname. I gave him the last three digits and the other long numbers in my husband's card. Immediately after 5 minutes he called and told me that there is no money and asked when he can check the money.

I was so shocked how he managed to access the account and tell me there is no money. Now he is been trying to call me since yesterday even today, but I have not taken his calls. Please help me because maybe they will try the account until they get something. I haven't told my husband yet. I am afraid.”

I was on the phone to her immediately suggesting that the moment we stopped talking she should call her bank and explain the situation. They would need to put a hold on the card to stop money being taken. She then would need to have a frank conversation with her husband.

I’ve been asked by many people about XForex, who ask if it’s connected to Eurextrade, the Ponzi scheme that collapsed in February. XForex is different, it offers the illusory opportunity to make money by trading foreign exchange but they neglect to mention that ordinary people rarely do so. The market is so volatile, the changes usually so slight and the companies like XForex so suspicious that we’re not going to make anything from it. Ask yourself this. If big commercial banks don’t make fortunes this way with the trillions they have to invest, how can ordinary people do so? The only people making money from Forex trading are the people recruiting more and more victims into Forex trading schemes.

Like Eurextrade, who recruited victims in fast food joints and by recruiting friends, colleagues and relatives, you can judge XForex by their recruitment techniques. XForex do it on Facebook by making ridiculous claims. One advert showed a picture of a room full of hundreds of scattered banknotes, announcing that “Mr.Baruti From Botswana Has Made $5024 From EUR/USD Trading Last Month!” It went on to say that “It Is So Easy To Make A Second Income! Take Your First Step In To a Wealthier Future!”

You can also judge the scheme by the story from the reader about XForex agents demanding to know people’s card numbers and security codes. XForex is what highly trained financial experts call hogwash. Their agents that abuse their victims like this are called thieves.

You’ve all heard of identity theft but did you know that companies can have their identity stolen as well as individuals?

We heard recently about two different companies “Campion Financial Service” and “Express Finance” that have approached people offering them loans at a mere 2.5% interest per year. What’s more both have offered to lend millions of Rand to the email recipients. All they need to do is send over their ID and the loan will be theirs.

Let’s face some hard facts. Real lenders don’t send out emails offering to lend money to total strangers. Real lenders have proper email addresses, not just free ones. Real lenders have landlines, not just cellphones. Real lenders don’t lend millions to people at a mere 2.5% interest per year.

The curious thing is that both of these companies actually exist. They’re both registered companies with authority (in South Africa) to lend money. But the emails aren’t from these companies, they’re from scammers pretending to be them. I called both of the real companies and they confirmed this. Some victims had traced the real companies and had learned the hard way that they had been scammed. I also called the scammers and it’s bizarre how they sounded distinctly West African rather than South African. Luckily we were able to prevent others falling victim to what is clearly an advance fee scam. Just before you get you multi-million Rand loan there’s a snag, some legal problem and they’ll need you to cough up some cash, that’s the “advance fee” they’re after. That’s what the scam is all about. If you are suckered and pay them they’ll then continue to squeeze more and more payments out of you until you either run out of money or realise you’ve been scammed.

The critical thing to understand is that not all thieves visit in the night. Not all thieves break in with a crowbar. Not all thieves try to steal your cellphone, wallet or your laptop. The more adventurous ones, the real experts, do their very best to steal everything you have from far away, using the internet and 3G connections.

Thieves, like all animals, gradually evolve due to environmental influences. Just as we evolved from earlier apes, scammers and thieves are evolving as well. I just hope we can evolve at least as fast as they can.

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We support consumers in Botswana, educating them on their rights, helping them to fix problems and exposing scams. Email us at watchdog@bes.bw, or call on +267 3904582 or fax on +267 3911763. It's all free, you've nothing to lose!